Expense Payment Fringe Benefits

Introduction

An expense payment fringe benefit arises where the University either:

  • Reimburses an employee for private expenses incurred by the employee
  • Pays expenses on behalf of the staff member

This is usually when the University pays a bill on behalf of the staff member such as home telephone, mobile calls, internet broadband fees etc.

Taxable Value

The taxable value of an expense payment fringe benefit is generally the amount of the expenditure incurred by the employee which is paid or reimbursed by the University.

The taxable value of an expense payment fringe benefit can be reduced by an amount that would have been deductible to the staff member (known as the Otherwise Deductible Rule) had they paid for the expense and not been reimbursed.

The University must claim a reduction in the taxable value in relation to a benefit that has been paid or reimbursed to a staff member by obtaining an approved declaration.

Substantiation Requirements - Declarations

An expense payment declaration is required to be completed by the employee stating how much of the expense that related to work. This needs to be expressed as a percentage and anything stated as less than 100% will be subject to FBT.

Download an approved copy of an expense payment declaration (Word).